Ukraine will receive EUR 6 billion of the Bridge financing under the EU's Ukraine Facility Instrument

Today, Ukraine signed a Loan Agreement and a Memorandum on Bridge financing for Ukraine under the Ukraine Facility. The total amount of concessional funds is EUR 6 billion.

The signatories on behalf of Ukraine were Minister of Finance Sergii Marchenko, First Deputy Prime Minister – Minister of Economy Yuliia Svyrydenko and Governor of the National Bank Andriy Pyshnyy. 

It is expected that the first disbursement of EUR 4.5 billion will be channeled to the State Budget of Ukraine in March. Ukraine will receive the rest of this amount — EUR 1.5 billion — in April 2024 after the European Commission assesses the performance of the indicators. As part of the Bridge financing mechanism, Ukraine is implementing 5 indicators in the areas of public finance management, anti-corruption, business environment development, etc.

"I am grateful to the European Union for the significant and timely financial support. The Bridge financing mechanism will allow us to cover the urgent needs of the budget until the final approval of the Ukraine Plan under the Facility Ukraine, which provides indicators of reforms during 2024-2027. Our profound cooperation with the European institutions continues to contribute to strengthening Ukraine's macro-financial stability, further economic growth and progress towards full EU membership," said Sergii Marchenko during the signing. 

Following the approval of the Ukraine Plan under the Facility Ukraine, the State Budget is expected to receive EUR 1.9 billion in pre-financing, which is uncoditional. Ukraine will receive the rest of the budget support on a quarterly basis after performing the indicators set out in the Ukraine Plan.

"Along with our European partners, we are completing the preparation of the Plan for the Ukraine Facility and preparing for the full launch of the program. We have made significant progress.  The signing of the Agreement will allow us to start financing even before the official approval of the Plan and will provide EUR 6 billion to cover the current needs of the State Budget in March and April this year," said Yuliia Svyrydenko.

EUR 50 billion under the Ukraine Facility will be allocated to budget support (EUR 38.27 billion), an investment fund (EUR 6.97 billion), and technical and administrative support (EUR 4.76 billion).